Fresh trading details on Monday could not provide respite for embattled LED lighting manufacturer Dialight (LSE:DIA).

The London-based business sank to 500p per share at one point in start-of-week trading before coming off that low, although it still remains 3% down on the day. Dialight's market value has halved during the past year, including a double-digit percentage fall after a painful profit warning in November on the back of manufacturing issues that hampered customer deliveries.

Smaller companies are generally riskier than their larger counterparts. In many cases, they lack the diversity and financial strength of FTSE 100 stocks. This means that the loss of a customer or difficult trading conditions in one local area can cause their financial performance and share price to deteriorate rapidly.

However, with higher risks can come higher rewards. Smaller companies have historically outperformed their larger peers in the long term. With that in mind, it could be worth buying these two small-caps for the long run.